New England Airlines Assignment

This exercise is designed to give you the opportunity to work on and develop your valuation skills. It asks you to estimate the enterprise value and equity value of New England Airlines. You should use both multiples and Discounted Cash Flow (DCF) valuation techniques, where appropriate and information is available.

Your final deliverable must contain three printed documents and be no longer than four pages:

1. A cover page that includes your names and Babson’s honor code, signed by all team members,

2. The Excel spreadsheet you created and used to determine value (please print your multiples valuation analysis on one page and your DCF valuation analysis on a second page), and

3. A very brief Word document, no longer than one page, explaining your results.

Please do not put your documents in any type of elegant binder; a staple in the upper left corner is sufficient.

The exercise can be completed in teams of up to 3 members (selected by you), and is due by the beginning of class on Monday, November 10.